Jeremy Thomson-Cook, Chief Economist at Equals Money :
“Markets seem to be confident that a blue wave is no longer a viable outcome from the election, and that some pivotal states – Pennsylvania, Ohio, Michigan and Wisconsin – may take as long as a day or two to certify their respective tallies. The dream scenario for stock markets was that Biden would have this wrapped up early and the postal votes would amplify his victory. That has not come to pass.”
“Patience is a virtue but is not something that financial markets tend to have in abundance and we see the immediate risk is an absence of certainty being filled with erroneous victory calls from President Trump’s camp and the beginning of legal proceedings to litigate the outcome of postal/absentee ballots.”
“If the results begin to favour a Biden win then we expect the USD to weaken slightly although the chances of Democrats winning the Senate are razor thin and so a large slip in the dollar remains unlikely. Legal fights and delays should boost the USD as investors look for a port in a storm.”
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